You may have heard people saying home prices in Orange County are about to crash—but let’s take a closer look at what the real data shows.
There are three big signs experts look for when predicting if home prices will drop: (1) a huge number of homes for sale, (2) lots of foreclosures and short sales, and (3) very low buyer demand. Right now, in Costa Mesa and throughout Orange County, only one of those signs is showing up: buyer demand is a bit slower than it used to be. But the number of homes for sale is still way below past crash levels, and almost no one is being forced to sell their home.
Even though inventory has ticked up (about 5,000 homes on the market countywide), it’s nowhere near the 15,000+ we saw before the 2008 housing crash. Plus, distressed sales—like foreclosures—make up less than 1% of the market. Most homeowners have a lot of equity or own their homes outright, so they’re in strong financial shape.
Bottom line? The Costa Mesa real estate market is stable, not sinking. While some homes may take longer to sell and pricing has softened slightly, this isn’t a crash. If mortgage rates dip below 6.5%, we could even see more buyers jumping back in. So whether you're buying, selling, or just staying informed, now is a great time to keep your eyes on local market trends. Need help navigating it all? I’ve got you covered and I’m always here to help you make smart real estate moves.
